The government has today launched a new 1,000-page strategy setting out how the UK will reach its target of reducing emissions to net zero by 2050.
The wide-ranging ‘Powering Up Britain’ document covers a whole spectrum of projects and initiatives including carbon capture, hydrogen production, nuclear power, offshore wind, electric vehicles and home efficiency.
What it didn’t include, however, was a much anticipated update on the proposed changes to Energy Performance Certificate (EPC) rules for landlords.
The only mentions related to energy efficiency standards in the private rented sector are to confirm that a consultation took place and that responses will be published ‘in due course’.
“We will publish a summary of responses to the consultation on improving the energy performance of privately rented homes and respond to the consultation on improving home emergency performance through lenders,” the report states.
Then later: “The government has consulted on proposals for the private rented sector and will publish the government response in due course.”
The original consultation two years ago proposed a tightening of the rules to require landlords to ensure all their properties have a minimum EPC rating of C, rather than the current rating of E.
It was suggested this be imposed from April 2025 for new tenancies and from April 2028 for existing tenancies. However, it’s now been speculated that the 2025 date will be dropped, giving all landlords until 2028 to raise the ratings where necessary.
According to a report in The Telegraph, ‘it is now understood that the deadline will be set at 2028 and apply to all rental properties’.
The Powering Up Britain report does say that a similar consultation will be coming in relation to the social rented sector though.
“Following the 2020 Social Housing White Paper, the 2021 Heat and Buildings Strategy committed government to consider setting a new regulatory standard of EPC Band C for the social rented sector. We have committed to begin the consultation process on a minimum energy efficiency standard for the social rental sector, within six months of the Social Housing Regulation Bill receiving Royal Assent.”
In addition, the government says it also plans to consult ‘by the end of this year on how to improve the energy efficiency of owner-occupied homes’.
Wider measures proposed in relation to homes include plans to phase out new and replacement gas boilers by 2035 at the latest, boosting the manufacture and take up of heat pumps and extending the Great British Insulation Scheme to help the most inefficient homes get grants for insulation. This could lead to household energy savings of £300-£400 a year, the report says.
Powering Up Britain is a revised strategy that was put forward following a 2022 High Court ruling that the previous plan didn’t include enough detail for tackling climate change.
Various criticism has been levelled at the new strategy, including ‘disappointment’ from the Royal Institution of Chartered Surveyors (Rics).
Rics senior public affairs officer Sam Rees says: “Powering Up Britain contained little in the way of incentives for the majority of consumers and businesses to create low-carbon, energy-efficient properties.
“Further expected announcements by the government look set to push back decarbonisation of the built environment, including a now 12-year phasing out of gas boilers and delays to create higher EPC-rated homes.”
Concerns have also been reiterated from the industry this week about the potential cost for landlords in meeting the raised energy efficiency standards and what support and infrastructure will be in place to help encourage them to stay in the sector.
Cross party think tank, the Social Media Foundation (SMF), says government targets to decarbonise homes are ‘likely to fail if politicians cannot find ways to ensure private rented sector landlords do more to better insulate rented homes’.
These comments were made after a poll by the think tank yesterday revealed 60% of landlords are ‘unwilling to commit contributing more than £250 towards the cost of improving the energy efficiency of a rented property’.
According to the SMF, the private rented sector has doubled in the last two decades, with 4.6 million households renting from a private landlord in 2021/22, representing 19% of all households in England.
Over 60% of these are reported to have an EPC rating of D or below.
In contrast to these findings, last month’s report by Paragon Bank on standards in the private rented sector suggest landlords have actually driven a 165% increase in the number of homes with an EPC of C or above in the last decade.
The bank said landlords have been investing in energy efficiency improvements, citing analysis that showed 44.5% of PRS properties are A to C rated, compared to 42.9% in the owner-occupied sector. Also that the number of PRS homes considered ‘non-decent’ has dropped to 23%, compared with 44% in 2008.
Speaking at the time, Paragon Bank managing director of mortgages Richard Rowntree said: “Landlords have driven an improvement in standards in recent years, which is reflected in the increase in energy-efficient rental property.
“However, landlords and the broader industry that serves the private rented sector now need more clarity on the government’s proposals for minimum levels of EPCs. It is over two years since the government’s consultation closed and the vacuum of information or direction since has created uncertainty and confusion.”
